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Washington – Managed Audit Program

SALT Report 1809 – The Washington Department of Revenue released information regarding their managed audit program. A managed audit is a contract between a taxpayer and the Department in which the taxpayer may actively participate in the audit process by performing some or all of the audit functions.

Once a contract is signed it obligates the taxpayer to perform specific audit functions in an agreed period of time, usually 60 days. The contract also provides that:

Any work performed by the taxpayer is subject to verification by an auditor,

The Department will waive the first $5,000 of interest on a tax assessment, and

The Department cannot add any assessment penalties, including the 5% assessment issuance penalty

If you are accepted for a managed audit, the Department will assign an auditor to:

Explain all audit procedures,

Provide specific written instructions,

Determine the audit functions the taxpayer may perform, and

Provide assistance throughout the course of the audit

If you are interested in the managed audit program you should submit a completed Managed Audit Application to the Department. After submission, an auditor will assess your business’ resources and your ability to perform the audit functions. Once this review is completed you will be contacted by the Department for further instructions.